Ch06 Customer-Driven Marketing Strategy PDF

Preview

Summary

Download Ch06 Customer-Driven Marketing Strategy PDF

Description

Chapter 6 Customer-Driven Marketing Strategy: Creating Value for Target Customers 1) When a company identifies the parts of the market it can serve best and most profitably, it is practicing ________. A) concentrated marketing B) mass marketing C) market targeting D) segmenting E) differentiation Answer: C

2) What are the four steps, in order, to designing a customer-driven marketing strategy? A) market segmentation, differentiation, positioning, and targeting B) positioning, market segmentation, mass marketing, and targeting C) market segmentation, targeting, differentiation, and positioning D) market alignment, market segmentation, differentiation, and market positioning E) market recognition, market preference, market targeting, and market insistence Answer: C

3) Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more ________ with products and services that match their unique needs. A) efficiently B) effectively C) intensely D) indirectly E) both A and B Answer: E

4) Even though several options are available at any one time, there ________ to segment a market. A) is one single best way B) is no single way C) is a most effective way D) are limited ways E) are four ways Answer: B

5) Your firm has decided to localize its products and services to meet local market demands. A good approach to use would be ________ segmentation. A) geographic B) benefit C) end-use D) customer E) image Answer: A Page Ref: 193

6) Pendergraff Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation does Pendergraff use? A) geographic B) behavioral C) lifestyle D) demographic E) psychographic Answer: D Page Ref: 194

7) Through talking to numerous competitors at a regional trade show, you learn that most of them use the most popular base for segmenting markets. What is it? A) demographic B) gender C) psychographic D) behavioral E) geographic Answer: A Page Ref: 194

8) Demographic variables are so frequently used in market segmentation because they ________. A) create smaller segments than other methods do B) create more easily reached segments than other methods do C) do not involve stereotypes D) are easy to measure in comparison to many other methods E) involve fewer attributes to consider than other methods do Answer: D Page Ref: 194

9) Marketers must be most careful to guard against which of the following when using age and life cycle segmentation? A) underestimating B) stereotyping C) traditional marketing D) cultural bias E) gender bias Answer: B Page Ref: 194

10) When Positive Image, Inc., caters to clothing, cosmetics, and toiletries markets, it is most likely using which type of segmentation? A) age and life cycle B) gender C) behavior D) psychographic E) geographic Answer: B Page Ref: 195

11) Marketers of automobiles, financial services, and travel are most likely to use which of the following types of segmentation?

A) gender B) income C) occasion D) usage rate E) benefits sought Answer: B Page Ref: 195

12) The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is ________ segmentation. A) behavioral B) psychographic C) age and life cycle D) demographic E) geographic Answer: A Page Ref: 196

13) Many marketers believe that which of the following variables are the best starting point for building marketing segments? A) behavioral B) family size C) gender D) age E) beneficial Answer: A Page Ref: 196

14) Which type of segmentation centers on the use of the word when, such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item? A) behavioral B) psychographic C) occasion D) impulse E) emergency Answer: C Page Ref: 196

15) Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called ________. A) user status B) usage rates C) benefit D) behavior E) loyalty status Answer: A Page Ref: 197

16) Consumers can show their allegiance to brands, stores, or companies. Marketers can use this information to segment consumers by ________. A) user status B) loyalty status C) store type D) brand preference E) usage rate Answer: B Page Ref: 197

17) By studying its less loyal buyers, a company can detect which brands are most ________ its own. A) competitive with B) used with C) overlooked with D) similar to E) complementary to Answer: A Page Ref: 198

18) Many firms make an effort to identify smaller, better-defined target groups by using ________. A) user rates B) loyalty segmentation C) multiple segmentation bases D) positioning E) mass marketing Answer: C Page Ref: 198

19) Consumer and business marketers use many of the same variables to segment markets. Business marketers use all of the following EXCEPT ________. A) operating characteristics B) purchasing approaches C) situational factors D) personal characteristics E) brand personalities Answer: E Page Ref: 198

20) As in consumer segmentation, many marketers believe that ________ and ________ segmentation provide the best basis for segmenting business markets. A) geographic; demographic B) user status; user loyalty C) benefits; buying behavior D) age and life-cycle; psychographic E) income; usage rate Answer: C Page Ref: 199

21) International Drilling Company segments its foreign markets by their overall level of economic development. This firm segments on what basis? A) political factors B) legal factors C) geographic factors D) economic factors E) cultural factors Answer: D Page Ref: 199

22) Lexus targets wealthy consumers with similar needs and buying behaviors, even though the consumers are located in different countries. This is an example of ________. A) intermarket segmentation B) loyalty segmentation C) life-cycle segmentation D) targeting segmentation E) psychographic segmentation Answer: A Page Ref: 200

23) When the size, purchasing power, and profiles of a market segment can be determined, it possesses the requirement of being ________. A) measurable B) accessible C) substantial D) actionable E) observable Answer: A Page Ref: 200

24) When a business market segment is large or profitable enough to serve, it is termed ________.

A) measurable B) accessible C) substantial D) actionable E) differentiable Answer: C Page Ref: 200

25) When an effective program can be designed for attracting and serving a chosen segment, the segment is best described as ________. A) accessible B) measurable C) reachable D) actionable E) differentiable Answer: D Page Ref: 201

26) You have discovered that the segments you are targeting are conceptually distinguishable and respond differently to different marketing mix elements and programs. These segments are ________. A) accessible B) measurable C) reachable D) differentiable E) observable Answer: D Page Ref: 201

27) To evaluate the different market segments your company serves, you would look at all of these factors EXCEPT which one? A) segment size B) segment growth C) segment structural attractiveness D) company values E) company resources Answer: D Page Ref: 201

28) Barney Hopkins has compiled a list of things that make segments more attractive. Which one of the following items should NOT be on the list? A) relative power of buyers B) lack of powerful suppliers to control prices C) few substitute products D) competition with superior resources E) financial resources Answer: D Page Ref: 201

29) Which of the following is NOT one of the reasons a segment would be less attractive to a company? A) strong competitors B) substitute products C) concentrated market D) power of buyers E) power of suppliers Answer: C Page Ref: 201

30) In general, a company should enter only segments in which it can ________ and ________. A) offer lower prices; ship faster B) offer superior value; gain advantages over competitors C) offer superior value; ship faster D) gain advantages over competitors; differentiate its products E) identify behaviors; understanding spending power Answer: B Page Ref: 201

31) Mass marketers, such as Target and Venture Stores, often ignore market segment differences and target the whole market with one offer. What is their approach to segmenting?

A) undifferentiated marketing B) differentiated marketing C) target marketing D) concentrated marketing E) micromarketing Answer: A Page Ref: 201

32) The 55-year-old baby boomers share common needs in music and performers. When a music company decides to serve this group, the group is called a(n) ________. A) market segment B) target market C) well-defined market D) differentiated market E) undifferentiated market Answer: B Page Ref: 201

33) When New Port Shipping uses segmented marketing, it targets several segments and designs separate offers for each one. This approach is called ________ marketing. A) undifferentiated B) differentiated C) target D) individual E) niche Answer: B Page Ref: 202

34) Developing a strong position within several segments creates more total sales than ________ marketing across all segments. A) undifferentiated B) differentiated C) niche D) target E) individual Answer: A Page Ref: 202

35) ByWay Ventures chose a differentiated marketing strategy. The company had to weigh ________ against ________ when selecting this strategy. A) extra research; costs B) sales analysis; sales

C) increased sales; increased costs D) geographic segmentation; demographic segmentation E) attitudes; perceptions Answer: C Page Ref: 204

36) Procter & Gamble sells six brands of laundry detergent in the United States, each designed for one of six laundry segments Procter & Gamble has identified. Together, these six brands take 62% of market share. Which of the following is a disadvantage of Procter & Gamble's differentiated marketing strategy? A) lost sales that would have been made with an undifferentiated marketing strategy across all segments B) lost customer loyalty due to lack of brand loyalty C) increased costs for separate marketing plans for each brand D) other suppliers controlling pricing E) lack of resources to succeed in an attractive segment Answer: C Page Ref: 202

37) Successful niche marketing relies on a firm's ________ and its ________. A) marketing strategy; services B) individual relationships with customers; positioning C) superior products; value network partners D) greater knowledge of customers' needs; special reputation E) competitive advantage in comparison to mass-market companies; affordable pricing Answer: D Page Ref: 204

38) Using concentrated marketing, the marketer goes after a ________ share of ________. A) small; a small market B) small; a large market C) large; one or a few niches D) large; the mass market E) moderate; local Answer: C Page Ref: 204

39) Niche marketing offers smaller companies the opportunity to compete by focusing their limited resources on serving niches that may be ________ or ________ larger companies. A) unimportant to; unwanted by B) unimportant to; overlooked by C) too small; undesirable to D) unknown by; unwanted by E) disappointed by; geographically far from Answer: B Page Ref: 204

40) Today, the low cost of setting up shop ________ makes it even more profitable to serve very small niches. A) in malls in major cities B) in mail-order catalogs C) on the Internet D) near major competitors E) far from competitors Answer: C Page Ref: 205 AACSB: Use of IT

41) Which of the segmenting strategies carries higher-than-average risks in consumer markets? A) concentrated B) mass C) differentiated D) undifferentiated E) multiple-segment Answer: A Page Ref: 205

42) As You Like It, Inc., customizes its offers to each individual consumer. This practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations

is referred to as ________ marketing. A) niche B) mass C) differentiated D) undifferentiated E) micro Answer: E Page Ref: 205

43) ________ tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. A) Undifferentiated B) Differentiated marketing C) Niche marketing D) Local marketing E) Individual marketing Answer: D Page Ref: 205

44) Which of the following is the narrowest marketing strategy? A) segmented strategy B) local marketing C) differentiated marketing D) mass marketing E) undifferentiated marketing Answer: B Page Ref: 202

45) Which of the following is NOT a drawback of local marketing? A) It can drive up manufacturing costs. B) It can drive up marketing costs by reducing economies of scale. C) It can create logistics problems. D) A brand's overall image might be diluted through too much variation. E) Supporting technologies are expensive. Answer: E Page Ref: 206

46) Under what circumstances can local marketing be quite effective? A) when pronounced regional differences in demographics are present B) when pronounced local differences in lifestyles are present C) when pronounced regional and local differences in demographics and lifestyles are present

D) when regional and local differences in demographics and lifestyles are similar E) all of the above Answer: C Page Ref: 206

47) When Wal-Mart customizes its merchandise store by store to meet shopper needs, it is practicing ________. A) niche marketing B) psychographic marketing C) local marketing D) social segmentation E) individual marketing Answer: C Page Ref: 205

48) When a company interacts one-on-one with large numbers of customers to create customerunique value by designing products and services tailor-made to individual needs, it is following ________. A) one-to-one marketing B) mass marketing C) mass customization D) differentiated marketing E) localization Answer: C Page Ref: 206

49) The move toward individual marketing mirrors the trend in consumer ________. A) self-imaging B) customizing C) self-marketing D) tastes E) self-conceptualization Answer: C Page Ref: 207

50) When choosing a target marketing strategy, many factors need to be considered. Which of the following does your text NOT mention as important? A) company resources B) degree of product variability C) product life-cycle stage D) product cost

E) competitors' marketing strategies Answer: D Page Ref: 207

51) When competitors use differentiated or concentrated marketing, ________ marketing can be disastrous. A) differentiated B) undifferentiated C) concentrated D) customized E) localized Answer: B Page Ref: 207

52) Target marketing sometimes generates controversy and concern. Issues usually involve the targeting of ________ consumers with ________ products. A) elderly; expensive B) young; appealing C) vulnerable; marketing D) vulnerable or disadvantaged; controversial or potentially harmful E) unexpected; deceptive Answer: D Page Ref: 208

53) It is considered socially irresponsible when the marketing of adult products spills over into the ________ segment. A) elderly B) child C) animal D) minority E) senior Answer: B Page Ref: 208

54) Cigarette, beer, and fast-food marketers have generated much controversy in recent years by their attempts to target ________. A) teens B) the poor C) inner-city minorities D) the poor in foreign markets E) suburban adults Answer: C Page Ref: 208

55) Most attempts to target children and minority groups provide ________ to target customers. A) benefits B) education C) disadvantages D) harm E) expenses Answer: A Page Ref: 209

56) In target marketing, the issue is not really who is targeted, but rather ________ and for ________. A) why; what B) how; what C) why; how long D) where; how long E) how; where Answer: B Page Ref: 209

57) Which group determines a product's position relative to competing products? A) manufacturers B) wholesalers C) retailers D) consumers E) suppliers Answer: D Page Ref: 209

58) A product's position is based on important attributes as perceived by ________. A) suppliers B) competitors C) market conditions D) consumers E) managers Answer: D Page Ref: 209

59) Consumers position products and services ________. A) after marketers put marketing mixes in place B) generally after consulting friends who use them C) with or without the help of marketers D) only reluctantly E) based on nearby competitors' positions Answer: C Page Ref: 209

60) Which of the listed choices is NOT a positioning task? A) identifying a set of possible competitive advantages upon which to build a position B) surveying frequent users of the product C) selecting an overall positioning strategy D) effectively communicating and delivering the chosen position to the market E) selecting the right competitive advantages Answer: B Page Ref: 210

61) A company or store gains a(n) ________ by differentiating its products and delivering more value. A) competitive advantage B) positioning advantage C) cost advantage D) efficiency advantage E) synergy Answer: A Page Ref: 210

62) A company or market offer can be differentiated along the lines of product, image, services, channels, or ________. A) prices B) nonprice factors C) people D) customer service E) location Answer: C

63) Which type of differentiation is used to gain competitive advantage through the way a firm designs its distribution coverage, expertise, and performance? A) services differentiation B) channel differentiation C) people differentiation D) product differentiation E) price differentiation Answer: B

64) When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation.

A) image B) people C) company D) reputation E) subliminal Answer: A

65) Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick to it. What does USP stand for? A) unique selling product B) unique services practice C) unique sales pitch D) unique selling proposition E) unique strategic practice Answer: D

66) A brand difference is worth establishing and promoting to the extent that it satisfies all of the criteria below EXCEPT which one? A) important B) distinctive C) divisible D) affordable E) noticeable Answer: C Page Ref: 214

67) You have just created the "perfect" ad. It communicates the full mix of benefits upon which the brand is differentiated and positioned. This full positioning of the brand is called ________. A) its value proposition B) target marketing C) capturing the consumers' attention D) value profiling E) differentiated marketing Answer: A Page Ref: 214

68) The answer to the customer's question "Why should I buy your brand?" is found in the ________. A) quality image B) customer services C) value proposition D) differentiation E) pricing and promotion structure Answer: C Page Ref: 214

69) What competitive positioning can attack a more-for-more strategy by introducing a brand offering with comparable quality at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing Answer: A Page Ref: 215

70) Which positioning strategy offers consumers a "good deal" by offering equivalent-quality products or services at a lower price? A) more-for-the-same B) more-for-less C) same-for-less D) less-for-much-less E) all-or-nothing Answer: C Page Ref: 215

71) "Less-for-much-less" positioning involves meeting consumers' ________. A) quality performance requirements at a lower price B) lower quality requirements in exchange for a lower price C) lower quality requirements at the lowest possible pr...